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CASE-CCAE Survey of Charitable

Giving to Higher Education in

Canada

Reporting Rules for Advancement

Adapted from the Ross-CASE Reporting Rules

July 2018

CASE-CCAE Survey of Charitable Giving to Higher Education in Canada

-Reporting Rules for Advancement - July 2018

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Introduction

The CASE-CCAE Survey of Charitable Giving to Canadian Higher Education is designed to provide

comprehensive data on fundraising and charitable giving to Canadian colleges, polytechnics and

universities. CCAE and CASE have collaborated to frame and review the survey and associated reporting

definitions with input from advisors from a range of Canadian Institutions. CASE will administer the survey,

analyze results, and develop the final report. Participating institutions will have complimentary access to

detailed survey results using CASE’s online Benchmarking Toolkit.

The survey will:

Raise the profile of higher education advancement in Canada and increase public understanding of

the role of philanthropy in support of education;

Provide data to help measure the impact of public policy and inform advocacy initiatives supporting

educational advancement in Canada and globally;

Enable participating institutions to measure and benchmark fundraising progress year-over-year

and among peer institutions;

Help institutional leaders set goals, assess performance, build capacity, and make informed,

strategic decisions regarding investments in advancement.

The council for Advancement and Support of Education (CASE) believes in advancing education to transform lives and society. As a global nonprofit membership association of educational institutions, CASE helps develop the communities of professional practice that build institutional resilience and success in challenging times. The communities include staff engaged in alumni relations, fundraising, marketing, student recruitment, stakeholder engagement, crisis communications and government relations. CASE is volunteer-led and uses the intellectual capital of senior practitioners to build capacity and capability across the world. CASE has offices in Washington, D.C., London, Singapore and Mexico City. Member institutions include more than 3,700 colleges and universities, primary and secondary independent and international schools, and nonprofit organizations in 82 countries. CASE serves nearly 88,000 practitioners. The Canadian Council for the Advancement of Education (CCAE) is a non-profit, volunteer-led organization that promotes excellence in educational advancement. CCAE provides opportunities for networking, professional learning, and mutual support for those who work to advance and promote Canadian education. CCAE serves some 140 institutional members and 1,500 individual educational advancement professionals who represent universities, colleges, polytechnics, institutes, independent schools and cégeps. CCAE members serve in advancement services, alumni relations, communications, marketing, fundraising (development), external relations, and other units to advance education in Canada for the benefit of society.

https://www.case.org/Samples_Research_and_Tools/Benchmarking_and_Research/Surveys_and_Studies/CASE-CCAE_Survey_of_Charitable_Giving_to_Canadian_Higher_Education.html

https://www.case.org/Samples_Research_and_Tools/Benchmarking_and_Research/Benchmarking_Resources/CASE_Benchmarking_Toolkit.html

https://www.case.org/

http://www.ccaecanada.org/index.php/



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Table of Contents

Key Terms

Identifying philanthropic funds

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4

Sources of philanthropic funds 4

Types of philanthropic funds 5

Philanthropic intent 6

Supporting documentation 9

Reporting guidelines 10

Funds secured 10

Definition of funds 13

Multi-institution gifts 13

Pledges (supplementary data) 14

Determining eligible philanthropic income 15

Appendices 18

Appendix A: Requirements for a gift to be tax deductible 18

Appendix B: Rules and examples relating to donor control of funds 19

Appendix C: Research funding scenarios 20

Appendix D: Shares as tax deductible gifts 23

Appendix E: Fundraising expenditures 23



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Key terms

Advancement: Throughout this document ‘Advancement’ is to be understood as a systematic, integrated

method of managing relationships in order to increase an educational institution's support from its key

outside constituents, including alumni and friends, government policy makers, the media, members of the

community, and philanthropic entities of all types.

Development Officers: Staff members professionally engaged in the process of cultivation, soliciting and

stewarding of donors to higher education institutions.

In-year: The 12-month period for which funds are counted, i.e. the institution’s financial reporting year.

Institution: Include the university, college, and subsidiaries (greater than 50% ownership) of the college or

university. Also include institutionally related foundations dedicated exclusively to the support of the

college or university.

Identifying philanthropic funds

In order for funding to be counted as philanthropic income, it is essential they meet both the following

criteria:

a. the funds are derived from an eligible source (refer to Sources of philanthropic funds); and

b. the nature of the funds meets the definition of philanthropic intent (refer to Philanthropic intent).

Sources of philanthropic funds

For the purpose of reporting, sources of philanthropic funds are the following.1

Individuals

● Alumni

This category includes all giving by former students—full- or part-time, undergraduate or

graduate—who have earned some credit toward one of the degrees, certificates, or diplomas

offered by the reporting institution. Report current students in the ‘Other individuals’ category. An

individual who completed only one semester or even only one degree-credit course with passing

grades may be included in the "Alumni" category. An individual who matriculated but did not

complete any course or who enrolled in a special course that did not carry credit toward a degree,

diploma, or certificate should not be included in the "Alumni" category.

1 Category definitions for ‘individuals’ and ‘organizations’ have been adapted from: CASE (2009), CASE Reporting

Standards and Management Guidelines for Educational Fundraising. Washington D.C. pp.37-40.



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Organizations

● Corporations

This category includes corporations, businesses, partnerships and cooperatives organized for profit-

making purposes, including corporations owned by individuals and families and other closely held

companies. This category includes company-sponsored foundations—that is, those created by

business corporations and funded exclusively by their companies—as well as industry trade

associations.

● Trusts and Foundations

This category includes personal and family foundations and other foundations and trusts that are

private tax-exempt entities operated exclusively for charitable purposes; this includes philanthropic

foundations and private ancillary funds.

● Other organizations

This category includes all organizations not defined herein as ‘Foundation’ or ‘Corporations’ other

than governmental agencies. This category includes organizations operating donor-advised funds

(other than those coming through community foundations).

Types of philanthropic funds

Philanthropic funds include:

● Gifts from private donors, in the country of your institution or elsewhere, of cash and other

instruments of wealth, including financial securities (shares), bonds and life insurance policies.

● Gifts in-kind of physical items e.g. property, art, and equipment.

● Bequest income received in-year from deceased individuals. (Bequest pledges from living donors

are excluded from reporting due to the level of uncertainty as to when the funds may be received.)

● Donations/grants from charitable trusts, private ancillary funds and foundations in the country of

your institution and overseas.

● Donations/grants from affiliated support foundations based outside of Canada (e.g. organizations

with 501(c)(3) tax exempt status in the United States; those registered for charitable status in the

United Kingdom; and like organizations in other countries). The value of the gift/grant funds

received in-year by the institution from the foundation should be counted; not the value of

individual gifts made to the foundation.

● Gifts/grants from business and industry in Canada and from outside of Canada.

● Gifts/grants from non-Canadian governments, business and philanthropic organizations.

Philanthropic funds do not include:



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a. All funding from Canadian federal, state and local government and their agencies including the

Social Sciences and Humanities Research Council (SSHRC) and the Canadian Institute of Health

Research (HRC). Government funds are very important to helping institutions achieve their

strategic goals. They are often secured competitively and help leverage private funds. Fundraising

staff often are integral to securing government support. The disbursement of government funds

does not fall under the definition of philanthropy as a private act. For this reason, government

funds should not be included in reporting but institutions should work to raise visibility and

recognition for the value of government funding in accomplishing institutional goals.2

b. Royalties and other funds generated by the exploitation of an institution’s intellectual property.

c. Internal transfers within the institution. (Note that this does not refer to the internal transfer of

philanthropic income from one part of an institution to another for the purposes of gift processing,

investment or fund management.)

Please note that qualifying as an eligible source of funding as outlined above is not sufficient. The gift must

also be made with philanthropic intent.

Philanthropic intent

Giving to an institution with philanthropic intent is defined as: all giving/granting which does not confer full

or partial ownership of a deliverable on the donor in return for the funding i.e. there must be no material

benefit to the donor. The gift/grant must be owned and controlled absolutely by the receiving institution

once it is received.

The rules defined in this document are designed to reflect the concept of a gift as outlined by relevant

taxation law. Details on requirements for a gift to be tax deductible have been included at Appendix A for

information purposes.

Exclusions from philanthropic intent

If any of the seven exclusion criteria outlined below apply (refer to Table 1) the whole of the funding

associated with an agreement becomes ineligible for reporting as philanthropic income. Institutions may

not deduct the known or estimated value of any such exclusion from the overall value of the funding

associated with an agreement and report the net remaining balance.

Table 1. Exclusion criteria

Exclusion criteria Description

1. Contractual A contract exists between the two parties which commits the recipient

2 CASE (2009), CASE Reporting Standards and Management Guidelines for Educational Fundraising. Washington D.C.

p.129.



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relationships/ sponsorship

institution to provide a material benefit for compensation where the agreement is binding and creates a quid pro quo relationship between the recipient institution and the donor.

2. Exclusive information The donor is entitled to receive exclusive information or other privileged access to data or results emerging from the program of activity e.g. copy of thesis or research report. Note that the mere provision of a report as to the outcomes of the research will not constitute exclusive information. See donor stewardship below.

3. Exclusive publication The donor is entitled to exclusive rights to publication of research or other results through their own branded communication channels (website, report etc.). Donors highlighting the gift to the institution via their website/annual report is however acceptable. See donor stewardship below.

4. Consultancy included The agreement includes the provision of consultancy services for the donor or a linked organization.

5. Intellectual property rights

The agreement assigns to the donor any full or partial rights to intellectual property which may result from the program of activity. This exclusion extends to the provision of royalty-free licences (whether exclusive or not exclusive) to the funder, and also to granting the funder first option or similar exclusive rights to purchase the rights to any subsequent commercial opportunities. If the written agreement includes any actual or potential future benefit of this kind, the gift must be excluded.

6. Other forms of financial benefit

Any other direct financial benefits required by the donor as a condition of the donation (e.g. discounted courses, training, use of facilities, invitations to social functions etc.).

7. Donor control The donor retains control over operational decisions relating to the use of funds once the gift has been made. This includes control over appointment and selection procedures to academic posts and student scholarships. (For detailed rules and examples on donor control of gifts, see Appendix B). Note that this clause has nothing to do with a donor’s right to know that a gift will be used for a designated purpose, where applicable, which is entirely consistent with a philanthropic gift.

This list is not comprehensive. There may be other instances where supply or material benefit means that

funding cannot be regarded as having philanthropic intent. In some circumstances, it may be appropriate

for philanthropic and non-philanthropic elements of a multi-faceted relationship with an organization to be

summarized in separate written agreements. In these circumstances, the philanthropic agreement is

eligible for inclusion, as long as none of the seven exclusions listed above or similar control provisions

apply, and the income associated with the gift/grant agreement is not contingent on delivery of any

activities included within the separate contractual agreement.



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Donor stewardship

Donor stewardship strategies such as reports and updates on projects, publications and honour boards, do

not in themselves represent a benefit to the donor. Stewardship of this kind is considered good practice

and actively encouraged.

● Approaches from donors

Some companies, trusts or individuals approach a single institution about a potential gift or invite

specific institutions to apply for funding; this has no bearing on the philanthropic intent involved,

and any gifts gained on that basis should be included, if none of the seven exclusion criteria listed

above or similar conditions apply.

● Reporting back to the donor

A donor may request or require an account of the use of funds and of the impact of the program or

project undertaken. Any such request/requirement from the donor for regular status or other

reports does not negate the philanthropic intent underlying a specific gift—agreements with

reporting requirements are still eligible if none of the exclusion criteria listed above apply.

Corporate sponsorship

Gift funding that represents corporate sponsorship must be excluded from reporting as the funds are

subject to a quid pro quo relationship i.e. funding received by an institution in exchange for a material

benefit to the donor.

In the context of higher education, a material benefit might include any of the following:

● naming an event after a sponsor;

● exclusive display of a sponsor’s name and/or logo;

● participating in a sponsor’s promotional activities;

● allowing a sponsor use of an institution’s name and/or logo;

● provision of free or reduced price services, e.g. free tickets to events;

● allowing free or subsidized access to special events, i.e. gala evenings;

● provision of entertainment or hospitality benefits or free/discounted attendance at a fundraising

event; and

● granting of exclusive rights or priority booking rights.

Examples of benefits which would be regarded as minor or non-material are as follows:

● recognition via participation in an institution’s/vice-chancellor’s donor circle;

● giving of a small gift i.e. calendar, pen, bookmark;

● invitations to the institution’s outreach events;

● naming the donor in a list of supporters;

● naming of a building, academic chair, lectureship, etc. after the donor (without the use of a logo);

and

● attaching the donor’s name to an item in the institution i.e. chair in a lecture theatre or musical



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instrument.

Institutional priorities and activities typically funded by philanthropy

Philanthropic funds can take the form of funding for buildings and land, staff appointments, equipment and

other assets, scholarships and bursaries, teaching and learning activities and research programs. (Note:

none of the seven exclusion criteria listed above may apply, irrespective of the activity funded; also refer to

Appendix C).

● Funding for buildings, land and equipment will typically be eligible as long as facilities funded

remain the property of the institution.

● Donor funded staff appointments are eligible, but if the agreement states that the member of staff

will allocate time to specific activities which would not meet the philanthropic intent definitions

within this document (i.e. any of the exclusion criteria listed above e.g. consultancy or work on

research contracts) then the funding should be excluded in full. Exclusion 7. Donor control will

need careful assessment (also refer to Appendix B).

● Funding for scholarships and bursaries is eligible, as long as the student recipient is not required to

undertake specific activities of material benefit to the funder (e.g. research projects, work

placements, copies of theses and research reports), in which case the funding should be excluded

in full. Exclusion 7. Donor control will need careful assessment (also refer to Appendix B).

● In the instance where gifts and grants specifically for research are eligible, these should be

assessed closely against the exclusion criteria on a case-by-case basis in order to consider the

difference in grant making criteria amongst different bodies (refer to Appendix C for worked

examples which are intended to help guide case-by-case assessment of specific grant/research

programs).

Supporting documentation

It is essential that reporting includes only pledges and gifts which are documented in writing (typically in

the form of a gift agreement or a written acknowledgment of the gift). Development Officers need to check

whether other individuals across the institution have assessed income as being eligible, and if so that

appropriate paperwork/documentation exists even if the Advancement Office is not in possession of it.

Reporting guidelines

This section provides guidance on how to report funds secured. Tracking funds secured enables an



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institution to measure and track the effectiveness of advancement efforts, the impact of philanthropic

support, including secured pledges in the financial reporting year as well and years following. The measure

excludes some philanthropic income received in the reporting year (“funds received”), notably payments

on pledges and income from bequests secured in prior years

Funds secured

Funds secured includes:

a. New single cash gifts received in-year; plus

b. New non-bequest pledges received in-year counted at their value for a duration of up to five years;

plus

c. New recurring gifts /direct debt orders at their duration for up to five years or their specified

termination date if less than five years; plus.

d. The documented value (provided by the receiving institution’s broker on the day that the gifts were

received) of financial instruments and gifts in-kind received in-year; plus

e. Cash, the documented value (provided by the receiving institution’s broker on the day that the gifts

were received) of financial instruments and gifts in-kind received in-year from bequests.

Funds secured excludes:

a. Cash received in-year from pledges.

Note that bequest commitments are not counted in funds secured due to the level of uncertainty as to

when the funds may be received.

Treatment of shares and financial instruments under funds secured

Gifts of shares, appreciated securities, bonds and other financial instruments should be valued for the

purpose of funds secured at the listed market price or documented value provided by the receiving

institution’s broker on the day that they were received.

Any income received from these financial instruments (e.g. dividends, interest etc.) should be excluded.

Income derived prior to the receipt of the gift is included e.g. where an institution receives a gift of shares

from an estate as well as a cash distribution as a result of dividends on the shares received by the estate;

the funds secured by the institution is considered the value of the shares at the date of transfer and the

cash transfer arising from estate dividend income on the shares.

Sales receipts in respect of gifts of shares and financial instruments made in previous years should not be

recorded in funds secured in the current year as these gifts should have been recorded under funds secured

in previous years at their imputed value at the time they were given.

Institutions should bring to account any gifts of shares or other property, at market value on the date the



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gift was made, irrespective of whether the shares or property had been held by the donor for more than 12

months. (Appendix D is included for information only.)

Treatment of gifts of real estate and gifts in-kind under funds secured

The value of donated real estate and other gifts in-kind that create assets in the institution’s balance sheet

(e.g. books and paintings) should be included under funds secured based on an external expert view (other

than that of the donor) on the value of the gift as close to the date of receipt as possible.

● Any income received from donated real estate (e.g. rent) and other gifts in-kind should be excluded

from reporting.

● Sales receipts in respect of real estate and other gifts in-kind made in previous years should not be

recorded in funds secured as these gifts should have been recorded under funds secured in previous

years at their imputed value at the time they were given.

● Gifts in-kind of services rendered (e.g. providing event facilities, consulting services and volunteer

time) are excluded entirely from reporting unless:

− the fair value of those services can be reliably determined; and

− the services would have been purchased if they had not been donated.

The institution will be required, for the purposes of preparing its financial accounts, to obtain an

independent valuation of property that has been donated. It will be up to the institution to determine a

valuation methodology suitable for the type of gift received and obtain a subsequent independent

valuation.

For the purpose of advancement reporting, institutions should bring to account any gifts of property, at

market value on the date the gift was made.

This process will apply to:

● all types of property received;

● cultural gifts;

● heritage gifts; and

● trading stock.

Return of unspent monies under funds secured

If donors making gifts/grants for restricted purposes stipulate that any unspent monies should be returned

to the donor, the full amount pledged can still be counted under funds secured. Any monies eventually

returned to the donor should be deducted from the funds secured total for the relevant year in which the

funds are returned. Where conditions in addition to the ‘return of unspent funds’ are included in an

agreement the gift may be excluded (per exclusions discussion).

Requirement for documentation under funds secured



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Only documented, confirmed pledges should be reported as funds secured, These include direct debit

mandates, documented gift agreements or other signed documents from the donor which confirms the size

of the donation and a timetable for the transfer of funds.

● Oral pledges should not be included.

● For the avoidance of doubt, any unspecified or undocumented pledges should not be included.

Bequests and funds secured

Bequest cash income, the documented value (provided by the receiving institution’s broker on the day that

the gifts were received) of financial instruments and the value of in-kind bequests (property, artwork etc.)

received in-year should be included under funds secured.

If the institution received notification in-year that a will has received probate yet the related cash was not

received in-year, no value should be included under funds secured, even if specified sums are included in

the probate documentation.

Bequest pledges from living donors are excluded from reporting due to the level of uncertainty as to when

the funds may be received.

Pledge duration under funds secured

The value of the duration of confirmed pledges, from the date of the pledge up to a duration of five years,

should be counted within funds secured. If a donor makes a pledge payable over multiple years this should

be treated as one pledge and its full value for the duration of the pledge up to five years should be counted

as funds secured. If a donor makes a pledge for a period exceeding five years, for the purposes of the

survey, this can be treated as multiple pledges each of up to 5 years duration. For example someone gives

an open ended direct debit of £10 per month. You can count this in the year it was given for five years.

When the 6th year begins you can count this donation again, and count it for a further 5 years. This can

continue until the donation ends.



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Definitions of funds

This note describes algebraically the components of funds secured.

Funds secured in-year = C + F + K + PT + RT + DC + DO

Sources of funds

C Cash gifts (one-off) without pledging involved.

F Documented value of gifts of shares, appreciated securities, bonds and other financial instruments.

(This value may differ from the amount received when the item is sold.)

K Documented value of gifts in-kind, including art works, real estate, etc.

(This value may differ from the amount received when the item is sold.)

PT Total amount to be paid over the duration of the pledge up to five years.

RT Amount of recurring gifts (direct debt mandates) to be paid over the course of five years (including

the reporting year).

D Bequest funds received in current year from previous bequest notifications, (including anywhere

death occurred in current year and bequeathed funds have been received from the estate in-year).

DC Bequest cash and the documented value of gifts of shares, appreciated securities, bonds and

other financial instruments. This value may differ from the amount received when the item is sold.

DO The documented value of bequest gifts in kind (property, artwork etc.)

Multi-institution gifts

Donors may give funds, eligible under the above rules for reporting, to one institution on the basis that a

portion of the gift may be allocated to another institution or institutions.

● If there is an agreement in place that describes a notional distribution of income between

institutions, nominated institutions should report the amount allocated to them in the agreement.

● If such an agreement is not in place, institutions should only report the portion of a shared gift that

it retains.

Example

University A receives a gift of $50,000 of which $20,000 is transferred to University B. In the absence of an

agreement that describes a notional distribution of income from the gift, University A should report

$30,000 and University B $20,000.



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Pledges not reported in the survey (supplementary data)

Although the following gift pledges are not eligible for reporting under the rules they could be documented

for internal purposes, as well as to highlight additional factors contributing to the success of an institution’s

campaign effort, and providing an indication of future income from these pledges.

● Oral pledges e.g. those as a result of a telephone campaign

● Unconfirmed online pledges

● Bequest pledges (from living donors)



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Determining eligible philanthropic income:

Funds

secured Funds

secured

Funds

secured

Funds

secured Funds

secured

Funds

secured

Funds

secured

Funds

secured



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A selection of typical sources of philanthropic support has been drawn up for the fictitious University of X,

and information provided showing under which headings specific values should be recorded.

During the year (1 January to 31 December) the University of X received a selection of cash gifts, confirmed pledges, bequests and gifts in-kind. These are described below along with an indication of which funds should be counted as “Funds Secured”. Note that in Table 3 along with an indication of how they should be reported (or not).3

Table 3. Worked examples for entries under funds secured and funds received

Description of support Funds secured ($’000)

Funds received ($‘000)

Gifts in-kind ($’000)

A. Several one-off gifts from trusts and large donors totalling $200,000. All have been received.

200 200 0

B. Several confirmed pledges from trusts and other large donors totalling $250,000. They have not yet been received but will come in over the next five years.

250 0 0

C. A final $10,000 instalment of a $40,000 gift from an individual donor made over four years.

0 10 0

D. A gift of a painting received in year, which was independently valued at $10,000. It was subsequently sold and the cash received raising $12,000.

10 0 10

E. A gift in-kind of computer equipment valued at $20,000, not yet sold.

20 0 20

F. Historic book given six years ago was sold within the year for $1,000.

0 0 0

G. Five alumni have written to say that they have each left $10,000 in their wills. This type of bequest pledge cannot be included in reporting.

0 0 0

H. Two alumni have died leaving legacy gifts totalling $55,000. The university receives notification during the year that both wills have gone through probate, but no cheques were received during the year.

0 0 0

I. One alumnus has died and the university has received notification during the year that the will has gone through probate. A total of $150,000 is due to the university and the first instalment $100,000 was received during the year. (Note: in this example if the remaining $50,000 is received the following year, that $50,000 would be included under both funds secured

100 100 0

3 Any gain/loss incurred between fair value at date of receipt and sales proceeds at the time of sale would not be

considered part of the original funds secured or gift in-kind. The gain/loss would be recognized separately as income

of the institution in a manner similar to investment income on gifts.



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and funds received in that year. Also see J below.) J. The final instalment of a bequest of $200,000 has

been received, worth $50,000. The previous instalments were received last year.

50 50 0

K. Two hundred donors have made one-off cash gifts (cheques/credit cards) all of which have been received totalling $65,000.

65 65 0

L. One hundred donors have enacted open-ended direct debit mandates of $1,000 p.a. and the first instalment of $100,000 has been received. As the direct debit mandates have been set up, a further four years of instalments, can be recorded as confirmed pledges under funds secured.

500 100 0

M. $35,000 has been received from standing orders set up in previous years.

0 35 0

N. 25 Alumni have made oral pledges via a telephone campaign totalling $50,000 over four years, but no paper work has been received. These oral pledges cannot be included in reporting.

0 0 0



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Appendix A

Requirements for a gift to be tax deductible

For a donor to claim a deduction for a gift, there are several requirements:

● the gift must be made to a deductible gift recipient (DGR);

● the payment must really be a gift;

● the gift must be of money or property that is covered by one of the gift types; and

● any gift conditions must be satisfied.

What is a gift?

Gifts have the following characteristics:

● there is a transfer of money or property;

● the transfer is made voluntarily;

● the transfer arises by way of benefaction; and

● no material benefit or advantage is received by the donor.

Not all payments to development offices are gifts. For example, the following payments are not gifts:

● purchases of raffle or art union tickets;

● purchases of chocolates, pens etc.;

● the cost of attending fundraising dinners, even if the cost exceeds the value of the dinner;

● membership fees;

● payments to school building funds as an alternative to an increase in school fees; and

● payments where the person has an understanding with the recipient that the payments will be

used to provide a benefit for the ‘donor’.

For further information see “What is a gift?” at:

https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/operating-a-registered-

charity/receiving-gifts/what-a-gift.html

https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/operating-a-registered-charity/receiving-gifts/what-a-gift.html

https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/operating-a-registered-charity/receiving-gifts/what-a-gift.html



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Appendix B

Rules and examples relating to donor control of funds

The definition of philanthropic funds confirms that the recipient institution must retain complete

ownership of any resultant work or product. This dictates that an individual, charitable trust or corporate

donor may not retain any explicit or implicit control over a gift after acceptance by the institution.

A donor can make a restricted gift to a department or area to which the recipient institution should apply

the contribution, and has the right to expect that restriction to be honoured. Both parties may wish to

engage in discussions of shared aims as part of a program of activity funded by the donor, and recipient

institutions may also wish to involve donors informally in the activity they are funding as part of good

stewardship. However certain forms of donor involvement or influence undermine the recipient

institution’s control over the gift. Specifically, donor control over candidate selection precludes the

counting of a gift in reporting.

The appointment process for donor-funded student scholarship recipients or staff appointments must

remain under the control of the recipient institution.

Example A

A donor establishes a scholarship fund but requires that she/he be able to select the recipient. This cannot

be counted as a philanthropic gift. The selection of the student must rest with the recipient institution,

which may nonetheless choose to involve the donor at an appropriate level in the student selection

process. But if the donor has a majority or a casting vote, or the power of veto in that process, the funding

must not be counted as a gift.

Example B

A donor makes a restricted contribution to a professorship while requiring the institution to award a

professorship to a specified individual. This cannot be counted as a philanthropic gift. Similar guidelines

would need to be in place as for Example A above.



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Appendix C

Research funding scenarios

The following scenarios of research funding are included as examples of funds eligible and ineligible for

reporting.

Example scenario Eligibility for reporting

Relevant exclusion criteria

A. An individual donor agrees to fund a research fellowship and a PhD studentship for five years in lung cancer research, and the university offers to name the positions in memory of the donor’s husband. The gift agreement is clear that all resulting research outputs, including any intellectual property, which emanate from the research of the funded positions or their team, will remain the property of the university

Eligible No exclusions

B. A company endows a professorship in sustainable engineering. The Chair is named after the company, but the company does not expect private access to privileged or commercially valuable data or information, or private consultancy or other form of direct financial benefit. The company asks for representation on the appointment panel, which the university accepts on the clear understanding that the appointment rests with the university and the company will follow the university’s appointment procedures (the company does not have a casting vote, or the power of veto in the process).

Eligible No exclusions

C. Identical to case B but ten days’ consultancy a year is built into the agreement.

Ineligible One exclusion: No. 4: Consultancy None of the funding is eligible.

D. A charitable trust funds a professorship and a research associate for ten years to work in a specific field of regenerative medicine. The agreement states that all findings will be in the public domain. The agreement includes a clause stating that if intellectual property with commercial value emanates from the research program, the rights to this will be split 50:50 between the university and the charity. All other clauses in the gift agreement are entirely compatible with the definitions of philanthropic intent in this survey.

Ineligible One exclusion:

No. 5: IP rights

Inclusion of this potential financial benefit to the charity makes it ineligible.

E. A medical charity provides money for research funding. They specify in the agreement that “the grant receiving organization hereby grants a perpetual, royalty-free non-exclusive licence” to the charity.

Ineligible One exclusion: No. 5: IP rights Even though the IP related rights are non-exclusive, any such



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inclusion means exclusion.

F. A funder uses blanket terms for their research grant agreements. These include the requirements for a share of any resulting intellectual property rights even where this is clearly not relevant to the research program in hand.

Ineligible One exclusion: No. 5: IP rights If no IPR is anticipated, contact could be made with the donor to seek to have this clause removed. It is the wording of the agreement that counts.

G. A charitable foundation awards a project grant to the university. The grant has a defined multi-year timeline and payment schedule; milestones to deliver along the way; and a specific purpose. An annual report and three quarterly updates must be submitted by the university each year. The foundation may request additional reports. The foundation “is making the grant in furtherance of its charitable purposes” and requires that any knowledge gained during the project “be promptly and broadly disseminated to the scientific and international development community”. None of the seven exclusion criteria (listed in Table 1) apply.

Eligible No exclusions Neither the inclusion of detailed reporting requirements, nor agreed milestones targets along the way, undermine the philanthropic intent of the grant.

H. A professional institute provides a donation to fund a principal researcher researching a niche area. The results of this research are relevant to the interests of the members of the funding institute. The funded person is required to provide the funder with quarterly reports on the research. The funder has the exclusive rights to publicize the results on their website, thereby putting them in the public domain. The university grants the funder a non-exclusive licence to use the results and copyright material generated in the course of the project.

Ineligible Two exclusions: No. 3: Exclusive publication No. 5: IP Rights

I. A donor funds both a piece of research and a post for a three-year period. The agreement states that the post holder will work across the research as well as on other projects. The agreement for the research funding includes the requirement for a share in any resulting intellectual property rights but there is no specific provision for a

Ineligible Research funding; one exclusion: No. 5: IP rights Post funding excluded as part of the agreement relates to non-



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share of the rights on the funding of the post. philanthropic activity. J. A grant is jointly funded by a government agency and a

charity. The overall agreement meets all of the criteria for a philanthropic gift according to these reporting rules.

The element funded by the charity is eligible. Government agency portion ineligible.

No exclusions

K. A major trust funds research contracts through their funding program as well as making philanthropic donations to institutions for buildings and equipment.

Research contract funding: ineligible. Philanthropic donations: eligible. (As long as the institution owns the new facility, e.g. building or laboratory)

Research contract funding; one exclusion: No. 1: Contractual relationship Philanthropic elements; no exclusions



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Appendix D

Shares as deductible gifts

Gifts of shares are acceptable as deductible gifts if the following conditions are met:

● the shares were acquired in a listed public company; and

● when the shares were gifted, they were listed for quotation on the stock exchange.

The amount that can be deducted for shares acquired more than 12 months ago is the market value of the

shares on the day the gift was made, as listed on the stock exchange.

For shares purchased in the last 12 months, the amount that can be deducted is the lesser of:

● the market value of the shares on the day the gift was made; and

● the amount paid for the shares.

Appendix E

The Canadian “Registered Charity Information Return (T3010) asks charities to report total expenditures

on fundraising. The following guidance is taken from “T4033 Completing the Registered Charity

Information Return”

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4033/t4033-17e.pdf

Line 5020: Enter the total expenses the charity paid out for fundraising activities, whether carried out by the charity or by third party fundraisers. Examples of fundraising expenditures are:

expenditures for fundraising activities, including salaries and overhead costs, promotional materials, campaign supplies, electronic data processing, and year-round office expenses directly related to fundraising

expenditures for promoting the charity and its activities to the community mainly for fundraising purposes

fees the charity paid to third party fundraising consultants or agencies (or amounts retained by them)

postage costs for direct mail canvassing

For more information on acceptable fundraising expenditures see the Canada Revenue Agency’s guidance on Fundraising by registered charities, CG-013

`

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4033/t4033-17e.pdf

https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/policies-guidance/fundraising-registered-charities-guidance.html

case-ccae survey of charitable giving to higher education ... ccae reporting r… · case-ccae...

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